yeah... thats it. LOL. you are so funny squirming trying to find any excuse you can. Do you really want sony to fail that bad? We will know who was right when the slim comes. Many people are saying Sony won't drop the price at all this year. Let's see what happens.

they are profitable.

what it's killing them its Dollar and Yen difference.

I don't really care about it, what I have a problem with is that you take assumption after assumption to equal fact.  I've already told you quite a long list of things that are either wrong or questionable.  I don't think anything you are saying is necessary wrong, I'm saying you just have don't know that information, most of all of your posts is pure guesswork and assumptions. 

Do you seriously think that Sony PR wouldn't say something like that?  I mean honestly, you LOL but stuff like that happens all the time.  Why do you think the words seem to be chosen so carefully?  What do you think the job of PR is?  Think about it for a second.  I'm not saying you're wrong, i'm saying you don't know and you're making more and more assumptions on top of other assumptions.  Fact is, you really don't know any of this stuff. 

can we ask a sony executive how much is right now the cost 4 the development of the PS3? is there a way to contact them? phone or email'

They lose about 10% per Ps3 right now. (40 dollars)

1. Talking about the PS3 production costs in anything but Yen is pretty foolish. Using just the Yen and then comparing it to the yield from the different regions from retail is smarter and more accurate.

2. We don't know what the PS3s initial cost started at, so thats 70% of what?

3. We don't know what exactly the person was talking about. Was that pure production costs minus hardware royalties for say the RSX, Cell, XD-Ram memory controllers? Did it even include things like the cost of the cables and controllers?

@Squilliam

You still ave QJ on the banners!

Those need to be changed to VGChartz, and pronto!

I don't have any photoshop skill!

iSuppli suggested in late December 2008, that the production costs of the PS3 were reduced by 35% to around $440 per unit selling at $399, this was based on the 65nm chipset compared to the initial 90nm chipset.

We have known for a while that the 45nm chipset is on the horizon as well as dropping costs for other components and more importantly the 50% drop of the bluray player costs later this year compared to at the start, which would see players costing $50 instead of $100

I wonder if a further 30% price reduction will apply to the chipsets seeing as according to iSuppli seeing as they cost approx $150 together in the 90nm chipset and were reduced to $105 when the 65nm which could mean that the combined chip costs could fall to around $80 or even less if production ramps up.

It also seems that the actual individual parts that make up a PS3 were nearly halved from the original 90nm PS3 to the latest 65nm version.  So again this could have with the Slim model and could effectively reduce the costs as well.

I don't see why a PSPSlim revision with new smaller chipsets, smaller power units as well as cheaper components and Bluray drive can't drastically reduce the cost of the unit.

Although I will stand by my initial statement weeks ago and state that I reckon the existing PS3 model will reduce in price by $100 and the new PS3Slim will enter the market at the higher current $399 pricepoint and will reduce at some stage next year once the current models are away.  This will allow Sony to make a healthy profit for the next 6 months and then by the time the current models are cleared away, they reduce the PS3Slim to the $299 pricepoint next year and it will still be making a profit.

In short, I can see the $100 reduction this year, but then nothing for at least another 12-18 months.